User Account

All Pages

Explain how breakeven analysis can be useful

Assignment Help Finance Basics
Reference no: EM13873424

You are considering the start of a small business that sells generator gaskets. According to your market research, you can sell each gasket for $12. Your fixed costs for the business are estimated at $35,000 and you estimate your variable costs to be $6 per gasket.

Required:

How many units will you have to sell to break even in the business? Calculate the breakeven point in units, and then in dollars.

In order to make the business a worthwhile activity, you require a $20,000 profit. How many units would you have to sell to make this venture worthwhile?

Explain how breakeven analysis can be useful to the person starting a small business and/or to an existing small business.

Reference no: EM13873424

Questions Cloud

How sensitive is the npv to changes in the quantity sold? : How sensitive is the NPV to changes in the quantity sold?
Sell its inventory and then collect the payment : ACME has accounts receivable of $700, sales of $4,200, inventory of $1,200, and cost of goods sold of $3,400. How long does it take ACME to both sell its inventory and then collect the payment?
Identify specific future strategy actions and recommendation : Examine and critically incorporate peer and Faculty Member feedback offered during the Shared Activity to modify and improve your general ecosystem and stakeholder analysis work.
Acme is deciding where to invest : ACME is deciding where to invest. Project 1 will produce cash flows of $52,000 a year for 6 years. Project 2 has cash flows of $48,000 a year for 8 years. If the interest rate is 15%, which project should ACME select and why?
Explain how breakeven analysis can be useful : Explain how breakeven analysis can be useful
What is the present value of the cash flows : Your organization has been asked to invest in a continuing care retirement center. Your investment will be $600,000 per year for the next five years. After five years, cash flows will be $400,000 per year for the next 15 years. If your discount rate ..
What is the amount of expected disbursements for quarter : Weisbro and Sons purchase their inventory one quarter prior to the quarter of sale. The purchase price is 60 percent of the sales price. The accounts payable period is 60 days. The accounts payable balance at the beginning of quarter one is $27,600. ..
Components of a typical supply chain management process : Define supply chain management. Describe the essential components of a typical supply chain management process, and define the components using examples
The company''s projected average receivables level : The company's projected average receivables level

Reviews

Write a Review

Finance Basics Questions & Answers

  Sales managers proposal

The president, vice president, and sales manager of Moorer Corporation were discussing the company's present credit policy.

  Describes why firms produce financial statements

Which of the following best describes why firms produce financial statements?

  Capers inc is also initiating an inventory management

part one working capital analysiscapers inc. has just promoted you to chief financial officer. since this is a new

  Capital budgeting question

The budget committee has received the following projects. They are mutually exclusive. The Corporation uses 10 percent as the rate of return.

  What must the risk-free rate be

A stock has an expected return of 13.3 percent, its beta is 1.45, and the expected return on the market is 10.5 percent. What must the risk-free rate be?

  Yield to maturity a bond sells for 90230 and has a coupon

bond prices aloha inc. has 8 percent coupon bonds on the market that have 14 years left to maturity. if the ytm on

  Morningside nursing home not-for-profit corporation its tax

morningside nursing home a not-for-profit corporationnbsp its tax exempt debt currently requires an interest rate of

  What is the best way to ensure that an organization is

what is the best way to ensure that an organization is complying with employment laws? explain your

  Compounded annually

Compounded annually

  Tab inc has a 100 million face value 10 year bond issue

tab inc. has a 100 million face value 10 year bond issue selling for 95 percent of par that pays an annual coupon of

  Ranking of best investments

Java Corporation is trying to select the best investment from among four alternatives. Each alternative involves an initial outlay of $100,000. Their cash shows follow: Compute and rank each alternative based upon:

  Use the internet to research two publically held health

use the internet to research two publically held health care organizations in your state that you believe would benefit

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd